The first quarter of 2001 saw further healthy growth in gold demand.
Demand for gold jewelry and personal investment in the 27 leading gold-consuming countries rose to 826 tonnes, which is 5% higher than in the corresponding period last year.
The upward trend in jewelry demand remained firm, with consumption 6% higher at 735 tonnes — a new first-quarter record. In contrast, investment demand remained subdued, falling 3% from the year-earlier period to 91 tonnes.
India led the way in consumption, with 243 tonnes, which is 23% higher than in the first quarter of 2000. Demand in the country was bolstered by a buoyant season of marriages and festivals, with retailers restocking after a period of strong sales.
New first-quarter records for gold consumption were set in the United Arab Emirates and Mexico, up 17% and 10%, year over year, respectively.
Sales of U.S. gold jewelry were also strong, aided in part by the fashion swing back to chunky yellow gold and away from expensive stone-set items. The same was true in Japan, where the trend pushed demand 19% higher than in the year-earlier period.
Together with some smaller increases in other markets, the rise in demand overshadowed sharp falls in Turkey and Taiwan, down 38% and 31%, respectively, as a result of economic difficulties and continued weakness in investment demand.
“In the immediate future, economic slowdown may dampen growth in the U.S. and some other markets, but the underlying trend in gold jewelry consumption is strong,” says Haruko Fukuda, chief executive officer of the London-based World Gold Council.
— The preceding is an excerpt from Gold Demand Trends, published by the World Gold Council.
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